Aloha Valued Client,
Days ago we learned that don’t have to pay tax on unemployment compensation of up to $10,200 if your income was under $150,000. The MAGI calculation included the gross unemployment. Well as of yesterday, that has changed again. If your MAGI is under $150,000 before unemployment is considered, you can exclude the first $10,200 of unemployment compensation.
If your 2020 income tax return has already been filed, there is no need to file an amended return to figure the amount of unemployment compensation to exclude. The IRS will refigure the taxes using the excluded unemployment compensation amount and adjust the tax account accordingly. The IRS will send any refund amount directly to you.
Your tax pro as no ability to track the recalculation nor additional refunds. We do not have any time frames concerning the refunds by IRS. We are putting out the information as we receive it.
